Posts Tagged ‘000 jobs’

VW will build a version of its CrossBlue Concept when it completes the Chattanooga plant expansion.

Despite a freeze on sales of most of its diesel-powered cars, and a series of lawsuits that could cost it billions of dollars, Volkswagen says it won’t scale back an ambitious plan to expand its Chattanooga assembly plant, a move that will cost it $900 million to add production of a new SUV, adding 2,000 new jobs in the process.

“The United States continues to be one of the most important markets for Volkswagen, and our commitment to Chattanooga and the state of Tennessee is clear proof of that,” said Michael Horn, president and CEO of Volkswagen Group of America.

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There had been speculation that VW might scale back the project in the wake of a scandal triggered by revelations it had cheated on emissions tests by installing a so-called “defeat device” in 482,000 diesel-powered vehicles sold in the U.S., and 11 million sold worldwide. The maker has already set aside $7.3 billion to cover the cost of the scandal, and Matthias Mueller, CEO of parent Volkswagen AG, has just outlined a five-step recovery plan.

Even as it confirms plans to add another 1,000 jobs to boost its battery car program, General Motors said it is contemplating whether to expand production of the new Chevrolet Volt.

GM CEO Dan Akerson, while stopping short of saying the Volt will be a runaway hit, says he has asked for a study of whether it’s feasible to ramp up production of a vehicle that was supposed to undergo a slow and cautious roll-out reflecting both uncertain demand and the challenge of producing an entirely new type of powertrain technology.

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For 2011, GM originally targeted production of just 10,000 Chevy Volts, with the figure to climb to 45,000 in 2011. But speaking at the official launch of production at the GM assembly plant in Detroit, Tuesday morning, Akerson said, “My sense is there is going to be a lot of demand for this vehicle.”

(Akerson spoke publicly for the first time after GM’s November 18 IPO, a stock offering he described as “successful beyond expectations.” Click Herefor that story.)

The so-called “Poletown” assembly plant is currently operating on only one shift so GM has at least the plant capacity to bump up Volt production. Battery-pack production could be a potential bottleneck, however, if demand for the Volt takes off.